What is Litecoin and how does it work? Let’s try to understand together how the Litecoin cryptocurrency works in detail. It is first of all a cryptocurrency that is present on the internet, and allows you to send and receive instant payments free of charge to all users who own an electronic wallet. Litecoin is therefore a way to send instant payments worldwide, free of charge. Litecoin undoubtedly means one of the most important cryptocurrencies in the world, before it there are only Bitcoin and Ethereum in terms of importance. It is also important to specify that Litecoin is one of the oldest cryptocurrencies ever after Bitcoin, from which it has taken a great inspiration. While maintaining Bitcoin ideals, it is mainly focused on speed (a lack that has brought many criticisms towards Bitcoin).
What Is Litecoin?
The term Litecoin means a completely and exclusively digital cryptocurrency which allows P2P payments to be made through the completely decentralized network on which it is based. Litecoin also works in a completely equal way that Bitcoin works, with the peculiarity that allows you to send and receive digital money in extremely faster mode than Bitcoin. Litecoin is in some ways extremely similar to how Bitcoin works, and just like most other cryptocurrencies, it is not managed by any central authority and essentially works with a totally open-source mechanism, completely transparent. After cryptocurrencies like Ripple, Ethereum and Bitcoin, Litecoin is one of the most important cryptocurrencies ever, among the cryptocurrencies with the largest capitalization
But how is Litecoin born and why? The Litecoin project was born some time ago through a program that was presented on the famous Github site by Charlie Lee, a former Google employee. One of the most fundamental features of Litecoin are its Bitcoin foundations, since most of this cryptocurrency is essentially based on the Bitcoin programming code. As we are talking about a real system completely structured on the basis of Bitcoin. Although there is a Bitcoin base, Litecoin differs in that blocks are generated much faster (every 2 and a half minutes) and there is a larger amount of coins and a highly optimized hashing system. In 2017, Litecoin has become one of the largest cryptocurrencies to adopt the Segregated Witness (SegWit) system, increasing the way payments are transmitted. This is why more and more people have preferred Litecoin to Bitcoin.
Litecoin VS Bitcoin
Can Litecoin be considered a real opponent for bitcoin? Very probably yes, as it offers the same type of Bitcoin service (cryptocurrency service). However, the peculiarity of Litecoin is that blocks can be generated in an extremely simpler and faster way. With Litecoin, everything is therefore more essential and faster, thus ensuring a much faster transaction confirmation between the nodes. Therefore, this allows you to receive and send money in extremely fast mode. The Litecoin, in fact, manages to do everything Bitcoin does in an extremely faster way. Litecoin therefore manages to “handle” a much higher number of transactions than Bitcoin, essentially thanks to the extremely faster generation of Bitcoin. If over time the Bitcoin should try to match this speed, this will lead the development team to make several updates to the Bitcoin code.
The only disadvantage of Litecoin is that over the years the Blockchain will reach very large dimensions compared to Bitcoin. However, the generation time of the Litecoin blocks, being extremely faster, reduces possible risks of double charges. So this means that a trade that has been waiting for at least two confirmations, would need to wait only 5 minutes, whereas it is therefore necessary to wait 10 minutes for a Bitcoin confirmation. The speed with which payments take place within the Bitcoin network is certainly one of the most criticized by fans, as according to most users it would be sufficient to send and receive payments even without confirmation for the vast majority of purchases. From a technical point of view, Litecoin is therefore better, as it allows payments to be sent and received instantly. However, we believe that Bitcoin is a more stable and safer investment than Litecoin.
The price of Litecoin has risen sharply over the past year, showing that more and more people are investing in this cryptocurrency. The increase in Litecoin was however owing to the renewed interest in cryptocurrencies, and in particular in Bitcoin, which brought a very generous cash flow to these assets. After a period of market laterality, the price of Litecoin has increased similarly to other cryptocurrencies. The intrinsic technical qualities of Litecoin have in any case made it possible to attract many investors thanks to the adoption of the segregated witness (SegWit). Thanks to this technology, which was originally created for Bitcoin, it is possible to obtain a much lower processing time for the blocks, thanks to the very low amount of data required for each transaction. Litecoin now has a transaction that is 8 times higher than that of Bitcoin. It is also important to note that it is currently one of the cryptocurrencies with the best technology ever invented before now.
Trading on Litecoin
How to trade on Litecoin? To trade in Litecoin it is sufficient to register on a regulated trading platform, which allows you to trade it (and many other cryptocurrencies) in an extremely secure and easy way. With itbfx.com it is possible to trade without commissions on Litecoin both long and short in real-time. Whether you are confident about the rise or fall of it in the future, you can now trade in this market with all the security of a worldwide broker like itbfx.